Source: Radio New Zealand
Unsplash – Towfiqu Barbhuiya
Got questions? RNZ has launched a new podcast, ‘No Stupid Questions’, with Susan Edmunds.
We’d love to hear more of your questions about money and the economy. You can send through written questions, like these ones, but even better, you can drop us a voice memo to our email questions@rnz.co.nz
You can also sign up to RNZ’s new money newsletter, ‘Money with Susan Edmunds’.
I thought NZ super was 65 percent of the average wage. Where do they get an average wage of the current rate from? Considering the minimum wage for a 40-hour week is $49,816, and Stats NZ says median weekly earnings from wages and salaries were $1380 in the June 2025 quarter, which equals $71,360, 65 percent of that equals $46,384 or $1784 a fortnight compared to NZ super of $1254.28.
NZ Super is set at a rate of 66 percent of the after-tax average ordinary time wage for couples and 40 percent for single people. But the key point to note is that it’s after-tax income. The figures you’ve quoted here are pre-tax. It is also calculated net of any ACC levies.
I was 50 years old when KiwiSaver was introduced! And at that stage the government did not suggest that we would not be able to live on the retirement benefit. I was working unpaid part-time for my former husband as a secretary/receptionist. I had two teenage children, both born in my 30s. In those days there was no paid leave for parents. One of my children is autistic and state subsidised childcare was available two mornings a week. I had to resign from my full time job and work part-time. The expectations that we all fund our retirement is unrealistic, especially for women and for people with children who are disabled. I am now nearly 70 years old. What do I do?
I’ve talked to Liz Koh at Enrich Retirement about your situation.
It’s hard to give any advice without knowing your full situation, but here are some high-level thoughts.
Your ability to access NZ Super hasn’t changed. You’re right that there is increasing talk about people not necessarily being able to rely on it into the future to the same degree, as it becomes more expensive. But any changes made won’t affect people who are already receiving it.
Koh says your biggest challenge is probably finding affordable accommodation. Depending on your situation, you might be able to get the accommodation supplement – that will rely on you having very few other assets though. It is worth checking with the Ministry of Social Development that you are getting all the assistance and support you are entitled to.
She says you could look at moving to a cheaper area, social housing or taking in some boarders for extra income.
“There’s a number of strategies for securing affordable accommodation but not all of them are palatable. It’s much cheaper to live in smaller towns and if your accommodation is secure, it is possible to live on NZ Superannuation if you are able to cut your costs right back, for example by growing vegetables, reducing power consumption, using public transport.”
You could potentially consider whether a reverse mortgage is an option, too, depending on whether you own your home.
My question is about the upcoming increase in KiwiSaver employer contribution to 3.5 percent from 1 April. Does my employer have to apply the increase if I’m already contributing more than 3.5 percent?
Yes, your employer’s contribution will need to lift to 3.5 percent from 1 April.
If people request that their rate does not increase temporarily, employers have the option of matching their lower contribution. But if the employee is contributing the higher amount, as you already are, your employer has to match it.
Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
